The future of crypto finance according to Pantera Capital
The future of crypto finance according to Pantera Capital
Crypto

The future of crypto finance according to Pantera Capital

By Fabio Lugano - 9 Jan 2019

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Pantera Capital, the well-known company that manages crypto investment funds, has just published a statement in which it shares its vision about the future of blockchain applications, especially in the financial sector.

Pantera Capital’s study addresses the sector of public blockchains, which are those open to all operators and without centralisation, since an effective innovation and growth comes from public projects and not private ones. To make a comparison, the revolution of the 90s came from the creation of the public Internet and not from corporate intranets, no matter how efficient they were.

Already now the blockchain can perform the two main functions of ordinary finance: provide guarantees and create derivative products in an efficient and complete way.

Pantera Capital crypto finance

Other activities carried out through blockchain include defining leverages and units of account and creating exchanges.

The next step will be the blockchain based transactions of real and financial assets with special arrangements, as for some the transaction is more complex, one example is real estate.

The management of proprietary investments must always be dynamic, starting from a basic paradigm, following it and continuously reviewing the investments in order to assess the intrinsic quality.

According to Pantera Capital, the evaluation should be made on the basis of a number of strategic factors:    

  • the underlying technology of the project, its logical foundations and its feasibility;
  • the economic basis of the project, i.e. the way in which the participants are remunerated or the incentives for the use of tokens or currencies;
  • the team that develops the project, their skills and reliability;
  • the project and the strategic vision behind the cryptocurrency;

These factors do not have to be analysed in a static, one-off way, but must be constantly re-evaluated and reinterpreted.

Currently, the optimal dAPPs for the financial system are already in place or are being introduced.

Often what is missing is the underlying platform for their application because the current ones are too slow or too expensive.

According to Pantera Capital, it is a matter of following the technological evolution and waiting for the moment in which the applications will meet the appropriate infrastructures.

This, however, may not happen immediately but may require a longer time perspective, even up to three years.

 

Fabio Lugano

Graduated with honors from Bocconi University, Fabio is a consultant for companies and wounded shareholders of the Banche Venete. He is also the author of "Scenari Economici", and lecturer and analyst of cryptocurrencies since 2016.

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